The aggregate capital of global reinsurers increased by 5.4% to $766 billion
Global reinsurers accumulated aggregate capital totaling $766 billion, which is 5.4% higher than the same indicator in the first half of 2023.
This is stated in the report of the international insurance and reinsurance broker Gallagher Re.
Reinsurers’ reported combined ratio improved to 84.5%, reinsurers’ return on equity edged up slightly to 19.6% in 1H2024 from 19.2% in 1H2023.
The authors of the report indicate that as a result of increased profitability, the industry fully compensated for losses from previous years and earned a profit above the cost of capital.
Since the beginning of the year, reinsurers have increased their revenue by 9% due to the increase in reinsurance rates.
“Despite a reduction in reserve release and a higher expense ratio, this improvement is due to a reduction in natural disaster losses and an improvement in the loss ratio,” commented the authors of the report.
Previously, the international rating agency AM Best compiled a list of the largest reinsurers based on the volume of premium income from reinsurance for 2023.